Visa’s Stablecoin Settlements Surge Past $20 Billion Annualized, Up 15x From Last Year

Visa’s stablecoin settlement volume has crossed a $20 billion annualized run rate, marking growth of more than 15 times compared to a year earlier. The company said more than 160 stablecoin-linked card programs were active globally during its fiscal second quarter, with payment volume on those programs nearly tripling year-over-year.

Funding Gap Creates New Financing Needs

The rapid growth has created working capital challenges for card issuers, who must cover daily settlement costs before collecting from cardholders. Visa noted that many early stage programs need only a few million dollars but must settle daily, making conventional credit facilities impractical for their business model.

New Credit Solutions Emerge

To address this, Credit Coop partnered with Visa to build a revolving credit facility backed by settlement receivables, using automated smart contracts to manage funding and repayments. Borrowing costs for participating programs have dropped by as much as 30% as more lenders enter the space. Visa Principal Member Rain has financed roughly $2 billion through the facility since 2023 without any defaults, while travel card issuer Karta recently raised $140 million after scaling through a similar credit arrangement.